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1、Strategic Human ResourceManagement and the HR Scorecard2Louis Gerstner and IBM1990s: To turn IBM around, wanted to emphasize winning, execution, speed, and decisiveness. Changed HR strategy, made 4 changes to compensation plan:“The marketplace rules”- multiple salary structures, with pay based on ma

2、rket “Fewer jobs, in broad-bands”-from 24 grades to 10, from 10 factors to 3 (skill,scope, ldrsp)“Managers manage”-was linked to formula; now managers make raise decisions“Big stakes for stakeholders-From salary to pay for perfomance 3Strategic planningStrategic plan A companys plan for how it will

3、match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage.Increased involvement of HRM The need to support corporate productivity and performance improvement efforts. Employees play an expanded role in employers performance impro

4、vement efforts. HR must be more involved in designing and executing the companys strategic plan.4The Strategic Management ProcessStrategic management The process of identifying and executing the organizations mission by matching its capabilities with the demands of its environment.Strategy A strateg

5、y is a course of action. The companys long-tem plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.5Overview of Strategic ManagementFigure 31 6 FIGURE 77Examples of a Companys Strengths, Weaknesses, Opport

6、unities, and Threats7 FIGURE 58Worksheet for Environmental Scanning8 FIGURE 54Relationships Among Strategies inMultiple-Business Firms9Types of Strategic PlanningCorporate-level strategy Identifies the portfolio of businesses that, in total, comprise the company and the ways in which these businesse

7、s relate to each other. Diversification strategy implies that the firm will expand by adding new product lines. Vertical integration strategy means the firm expands by, perhaps, producing its own raw materials, or selling its products direct. Consolidation strategy reduces the companys size Geograph

8、ic expansion strategy takes the company abroad.10 FIGURE 510BCG Matrix11Competitive Advantage Competitive advantage means “any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share” 12Types of Strategic Planning (contd)Busin

9、ess-level/competitive strategy Identifies how to build and strengthen the businesss long-term competitive position in the marketplace. Cost leadership: the enterprise aims to become the low-cost leader in an industry. Differentiation: a firm seeks to be unique in its industry along dimensions that a

10、re widely valued by buyers. Focus: a firm seeks to carve out a market niche, and compete by providing a product or service customers can get in no other way.13Types of Strategic Planning (contd)Functional strategies Identify the basic courses of action that each department will pursue in order to he

11、lp the business attain its competitive goals.14HR and Competitive AdvantageCompetitive advantage Any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share. Superior human resources are an important source of competitive adva

12、ntage Signicast Corp. Needed to build new automated factory, but needed workers with new skill sets to execute this strategy 15Strategic Human Resource ManagementStrategic Human Resource Management Formulating and executing HR systemsHR policies and activitiesthat produce the employee competencies a

13、nd behaviors the company needs to achieve its strategic aims.16Linking Corporate and HR StrategiesFigure 36 Source: 2003, Gary Dessler, Ph.D.17HRS Strategic RolesHR professionals should be part of the firms strategic planning executive team. Identify the human issues that are vital to business strat

14、egy. Help establish and execute strategy. Provide alternative insights. Are centrally involved in creating responsive and market-driven organizations. Conceptualize and execute organizational changes to support new strategies (IBM).18HR Involvement in MergersFigure 37 Source: Jeffrey Schmidt, “The C

15、orrect Spelling of M & A Begins with HR,” HR Magazine, June 2001, p. 105.19HRs Strategy Execution RoleFunctional strategy: The HR departments strategies, policies, and activities must make sense in terms of the companys corporate and competitive strategies, and they must support those strategies

16、.20HRs Strategy Formulation RoleHR helps top management formulate strategy in a variety of ways, by. Supplying competitive intelligence that may be useful in the strategic planning process. Supplying information regarding the companys internal human strengths and weaknesses. Build a persuasive case

17、that shows howin specific and measurable termsthe firms HR activities can and do contribute to creating value for the company.21Basic Model of How to AlignHR Strategy and Actionswith Business StrategyFigure 39 Source: Adapted from Garrett Walker and J. Randal MacDonald, “Designing and Implementing a

18、n HR Scorecard,” Human Resources Management 40, no. 4 (2001), p. 370.Translating Strategy into HR Policy and Practice22The HR Scorecard ApproachHR Scorecard process Uses metrics (employees tested, trained, etc.) to link and measure the HR functions effectiveness in producing the employee behaviors n

19、eeded to achieve the companys strategic goals.HR Scorecard process depends on: Understanding the companys strategic goals. Understanding the causal links between HR activities, employee behaviors, organizational outcomes, and the organizations performance. Having metrics to measure all the activitie

20、s and results23Strategic HR RelationshipsFigure 310 24Outline a “Strategy Map”A graphical tool that summarizes the cause-and-effect chain of activities that contribute to companys performanceFor Southwest Airlines, for example:(1) Flexible union contracts, high compensation, employee stock ownership

21、 mean (2) lean, productive ground and gate crews, mean (3) 15-minute gate turnarounds, frequent reliable departures, and high aircraft utilization, which mean (4) low ticket prices and (5) 40 years of profits from THE low-cost airline.25The Southwest Airlines Activity SystemFigure 35 Source: Reprint

22、ed by permission of Harvard Business Review. From “What is Strategy?” by Michael E. Porter, NovemberDecember 1996. Copyright 1996 by the President and Fellows of Harvard College, all rights reserved.26Using the HR Scorecard ApproachStep 1:Define the strategy and strategic goals Step 2:Outline the st

23、rategy map showing cause-effects relationshipsStep 3:Identify the Strategically Required Company Outcomes (customer service, profits)Step 4:Identify the Required Workforce Competencies and BehaviorsStep 5:Identify the Strategically Relevant HR System Policies and ActivitiesStep 6: Choose metrics and design and periodically evaluate the HR Scorecard Measurement system27Figure 69 HR Scorecard Process for “Hotel Paris Internation

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